The company delivered a solid financial performance and paid a dividend of €33.1 million to the exchequer for this period, an increase of 10 per cent on the previous year.
Despite the challenging domestic environment and sustained increases in wholesale prices, the company performed well in 2011. Turnover grew by 5 per cent to €1,608 million and EBITDA increased by 4 per cent or €12 million to €343 million. Profit before income tax was down 24 per cent to €94 million due to ongoing capital investment and the increased costs of finance.
The financial strength and strategic direction of the company received a vote of confidence from international bank lenders in June, with the agreement of a €500 million multi-currency revolving credit facility.
Bord Gáis continues to invest in developing its generation portfolio and is now a key player in the Irish Wind market, generating 15 per cent of the installed wind capacity in Ireland at present. Over the next 3 years, the company will invest a further €400 million developing its wind farm asset base.
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In 2011, in response to the growth in customer arrears faced by all energy providers, Bord Gáis significantly increased the resources available to provide help to customers who are struggling to pay their bills. We agreed 82,000 repayment plans and installed 21,600 pay as you go meters free of charge in the year, compared with 31,500 repayment plans and 1,250 pay as you go meters in 2010. However, customer debt remains a key concern with 114,000 customer accounts in arrears at the end of 2011.
Commenting on the results, Rose Hynes, Chairman of Bord Gáis Eireann, said: "The Company has performed well in 2011, delivering on its obligations to shareholders, through an increased dividend, and to customers, through a high standard of customer care and support. The company has also focussed on meeting its social obligations through a proactive approach to customer arrears in which over 100,000 customers received help to manage their bills in 2011.
"Over the next two years, Bord Gáis will undergo a significant transformation. The Government’s recent decision to establish Irish Water as a public utility within the Bord Gáis Group was an historic decision and will lead to the creation of a valuable state asset that will serve Irish citizens and make a significant contribution to the Irish economy. In addition to the establishment of Irish Water, Bord Gáis is also preparing for the sale of Bord Gáis Energy. We are currently engaged in an intensive phase of discussions with NewERA and expect to begin the process of appointing advisors in the coming weeks."
(CD)
